Question
a) What are the revenues in MM$ generated from sales of 3.0 MM metric tons per year of polyethylene if sales price per ton in
a) What are the revenues in MM$ generated from sales of 3.0 MM metric tons per year of polyethylene if sales price per ton in 2019 was $1250?
b) It takes 1.06 tons of raw materials to make 1 metric ton of polyethylene and sales price of raw material is $0.20 per kg. Given the price of product of 3.0 MM metric tons per year, what is the gross margin in MM$?
c) If cash cost of production is 40 percent of the gross margin and tax rate in Problem #5 is 35% what is net profit in MM$ (to 6 decimal points)?
d) Assuming that the capital invested in 2019 is the cost of 3.0 MM metric tons per year plant, what is the percentage (to 2 decimal points) return on investment?
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